If you don’t improve the packaging, you will be charged extra?! Amazon will implement this in the second half of the year!

The new FBA rate policy that was implemented yesterday can be said to be great news for our sellers this year, especially the reduction in the minimum commission fee, which allows small and low-priced sellers to have more profit margins and pricing options . If there are still some unclear points about the new rate, you can click on our previous tweets below to learn more.

FBA policies and fees fully updated!

But recently, my little clone learned about a new move by Amazon from foreign media. Perhaps the money we saved will have to be returned to my brother-in-law in another place.

According to foreign media reports, Amazon recently issued a notice to many fast-moving consumer goods brands, requiring them to update their product packaging to meet more environmentally friendly, durable and cheap standards, and set penalties.

Brands that complete the upgrade and meet the new packaging requirements before the August 1 deadline will receive a reward of $1 per item .

If the packaging upgrade can be completed ahead of schedule, before the August deadline, the brand can earn considerable income through the above reward, which may still be considerable even after offsetting the additional costs of upgrading the packaging .

etc.

Don’t think about how much money you can make.

First of all, although this plan is mandatory by Amazon (if you don’t do it well, you will be fined), it is not for all sellers. You can only participate if Amazon notifies you that you need to update your packaging. So what types of sellers are Amazon’s target groups?

The original intention of this plan is to reduce transportation costs, urge sellers to use correct packaging and reduce waste. Therefore, it targets fast-moving consumer goods (CPG) brands that have serious over-packaging problems and very short product life cycles. Daily chemical brands such as Tide, which were the first to respond to Amazon's plan, are typical fast-moving consumer goods.

Heavy products, large packaging and low recyclability lead to high transportation and storage costs, but the profit of fast-moving consumer goods is indeed much lower than that of other products on Amazon, so how to balance these products has always been a headache for Amazon.

Amazon has introduced this new plan, which is nothing more than to constrain sellers and manufacturers to follow the packaging standards given by themselves to reduce their storage and transportation costs. Although the constraints are basically on brand manufacturers, in the future, the same or improved standards will be used to constrain ordinary sellers. Sellers who still have some spare capacity at present may wish to make arrangements in packaging to deal with it in advance. What if one day they can make a fortune with a subsidy of $1 per piece?